ASCA takes UK standards into account
01 Dec 1983The constitution for a new accounting body, Arab Society of Certified Accountants (ASCA) receives approval in London on 8 December.
Talal Abu-Ghazaleh, the controversial head of the new society, believes it marks an important departure from previous piecemeal attempts to set up professional accounting institutions.
Abu-Ghazaleh intends to model the society on the UK’s Association of Certified Accountants, and aims to impose rigid technical and ethical standards. ASCA adviser Peter Rodford, a member of the ACA, adds that they “would not necessarily adopt UK standards but rigorous standards would be introduced.”
Abu-Ghazaleh runs the UK-registered, Kuwait-based Talal Abu-Ghazaleh International, one of the major accounting firms in the region. Since breaking away from Saba & Company in 1972, he has built up a financial services empire and in the process generated a lot of publicity.
It is difficult to say whether Abu-Ghazaleh and the 28 founder members will succeed. Many prominent accountants argue that there are too many accounting societies in the Middle East. There is an Arab Federation of Accountants in each country as well as a Middle East society.
Several Arab governments have pledged their support to the new society but ultimately its success will depend on the response of Arab accountants. Many point out the need for rigid standards and a more professional approach in the region. In order to succeed, Abu-Ghazaleh needs to forge together the various accounting groups under his leadership and within UK guidelines. Given the diversity of accounting systems and personalities involved, this will not be an easy task.
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